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So for twice the price of the arcade version they spraypaint the console black and give you a headset and a 120 gb hard drive?
Does it come with the two games on the box? can't be bothered to look, but that would make up some of the $170 difference, along with the hard drive and headset.
i agree with your sentiment #1, but it does come with a hdmi cable along with an audio out adaptor along with the games. that said, i'd go for the arcade plus a 120gb, which can be found at cc for 99 or whereabouts. there was even a cc deal for a 20gb refurb plus an extra controller for 40. most likely you'll get a jasper, and having the headset just allows annoying 13 year olds to yell at you closer to your ear.
At this price, get the cheap system. Or spend a $1 more and get the PS3 deal above.
This is actually a great deal for this system. I just bought the elite for $350 without the free games.